Why We Like It:
ATK is in the defense industry. What many people don't know is that ATK is the largest ammunition manufacturer in the U.S. In 2013 ammo demand in the U.S. has been exceptionally high from both consumers and the U.S. government.

Shares of ATK have been very resilient. Traders bought the dip near short-term support at the 10-dma back in late July and they're doing it again now. Bears will argue that ATK is overbought and due for a correction and they could be right but thus far ATK has done a pretty good job ignoring the market's recent weakness.

The recent high is near $101.00. We are suggesting a trigger to buy calls at $101.25. If triggered our target is $108.00. The option spreads on ATK are a little bit wide therefore I am suggesting we use small positions to limit our risk.

Trigger @ 101.25 *small positions*

- Suggested Positions -

buy the Nov $105 call (ATK1316k105) current ask $2.75

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 462 thousand
Listed on August 20, 2013

Why We Like It:
LL is a specialty retailer for hardwood flooring. Better than expected earnings results from Home Depot (HD) today may have helped fuel gains in LL. Tomorrow we'll hear from Lowe's (LOW), who reports earnings before the bell.
When LL reported earnings back in July the company beat estimates, beat the revenue number and raised guidance.

Today's display of relative strength in LL has pushed the stock to significant, round-number resistance at the $100 level. A breakout here could spark some short covering. The most recent data listed short interest at 25% of the small 26.2 million share float.

We are suggesting a trigger to buy calls at $100.25. If triggered our target is $108.00. More conservative traders may want to exit near $105.00 instead.

Trigger @ 100.25

- Suggested Positions -

buy the Sep $105 call (LL1321i105) current ask $1.85

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 611 thousand
Listed on August 20, 2013

Why We Like It:
HBI is an apparel maker. The stock exploded higher back in late July thanks to its much better than expected earnings report and management raising guidance. The rally finally ran out of steam and HBI has been correcting lower for three weeks. The profit taking continued today.

We are suggesting a trigger to buy puts at $58.95. If triggered our target is $55.25.

Trigger @ 58.95

- Suggested Positions -

buy the Sep $55 PUT (HBI1321u55) current ask $0.50

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.1 million
Listed on August 20, 2013